Taiwanese passive component supplier Yageo posted a 27% quarter-on-quarter increase in net profit to NT$6.36 billion ($207 million) for the third quarter, though revenue growth remained modest at just 1% from the previous period. The company’s third-quarter sales reached NT$33.09 billion ($1.08 billion), reflecting slowing momentum after stronger gains earlier in the year.
The muted revenue performance comes after the company had earlier forecast low single-digit growth for the quarter, tempering earlier optimism about sustained AI-driven demand. While Yageo attributed the profit gains to improved product mix from artificial intelligence applications, the company acknowledged mounting pressures from exchange rate volatility and what it termed “significant geopolitical uncertainties.”
Operating margins expanded to 22.9%, up from 21.5% in the prior quarter, aided by foreign exchange gains of NT$220 million. Year-to-date profit climbed 8% to NT$16.88 billion ($550 million) on sales of NT$96.96 billion ($3.16 billion).
The passive component sector has benefited from normalized customer inventories and strong demand for multilayer ceramic capacitors used in AI servers, which require five to ten times more components than traditional servers. However, the company struck a cautious tone about future quarters, signaling concerns about tariff impacts and currency movements across key markets.
